Risk Management Committee Gender and Likelihood of Financial Distress of Listed Deposit Money Banks in Nigeria (Published)
This study explores the effect of risk management committee gender diversity on the likelihood of financial distress among listed deposit money banks in Nigeria. The study utilizes the Nigerian Code of Corporate Governance 2018 as an instrumental variable to address endogeneity concerns related to the self-selection of gender diversity on the risk management committee. The dependent variable is the likelihood of financial distress, while the independent variable is the gender composition of the risk management committee. The sample size consists of 12 listed deposit money banks, and the data covers the period from 2017 to 2021. The analysis employs a two-stage regression analysis technique. The findings of this study reveal a significant positive effect of risk management committee gender on the likelihood of financial distress among listed deposit money banks in Nigeria. This suggests that a higher representation of a particular gender in the risk management committee is associated with an increased likelihood of financial distress. The results have important implications for policymakers, regulators, and banking institutions in Nigeria. The study highlights the need to consider gender diversity in risk management committees as a potential driver of financial distress. The findings call for proactive measures to promote a more balanced gender representation and inclusion in corporate decision-making processes within the banking sector. The findings emphasize the significance of gender diversity in risk management practices and provide valuable insights for stakeholders seeking to enhance risk assessment and mitigate the occurrence of financial distress in the banking sector.
Keywords: Banks’, Financial Distress, Gender diversity, Nigeria, Risk Management
Credit Risk and Financial Performance of Deposit Money Banks in Nigeria: Moderating Role of Risk Management Committee (Published)
The global financial crisis of 2008 and the economic dislocation that followed the emergence of COVID 19 adversely affected financial institutions leading to debt crisis in the Nigerian banking sector. Despite the risk management framework within the banking sector, credit still remains a crucial factor in comparison to other driving factors in the bank, due to its attendant risk and the effect on the economy. This study examined the risk management committee’s role on the effect of credit risk on financial performance of 13 deposit money banks in Nigeria from 2012 to 2021. Finance distress theory was adopted for the study. The study adopted census sampling technique. Regression model used to analyze the panel data. The multiple regression result revealed that credit risk has a negative and significant effect on financial performance. The moderating role of risk management committee revealed that credit risk has a positive and significant impact on financial performance of deposit money banks in Nigeria. The study recommends that DMBs in Nigeria should continue improving on their risk management policies to enable good credit facility procedures to borrowers, also the board of directors should actively participate in managing the credit facilities to customers.
Keywords: Credit risk, Deposit Money Banks, Financial Performance, Nigeria, Risk Management
Auditors’ Assurance Services: Tools for Information on Project Execution and Risk Management in Public Sector of Nigerian Economy (Published)
The study examined the role of audit firms in providing valuable information for project execution and risk management in the public sector of the Nigerian economy. The aim was to investigate the impact of auditing and assurance services of auditors (predicator variables) on project delivery (dependent variables). Data for the study were obtained through questionnaire administered on 350 top government officials at state and local government councils in Gombe, Nasarawa and Kogi states. The questionnaire was designed to reflect five (5) Likert scale. Response from 227 respondents representing approximately 65 percent responses rate were empirically analysed using multiple regression with diagnostic test of the predicator variables carried out using multicolinearity test. The result of the analysis suggests that the independent variables of the study have significant impact on the dependent variable. The study recommends engagement of independent audit firms by government officials in their project initiation and implementation programmes for the impactful nature of the services of auditors in public project execution and expenditure management there on.
Keywords: Public Sector, Risk Management, auditing and assurance, project execution, valuable information
Corporate Board Size, Risk Management and Financial Performance of Listed Deposit Money Banks in Nigeria (Published)
This study examined the effect of corporate board size, risk management on financial performance of listed deposit money banks in Nigeria for the period of 2011-2016. The population of the study is fifteen (15) listed deposit money banks in Nigeria out of which a sample of fourteen (14) were used for the study due to the accessibility and availability of data. Corporate board size and risk management as the independent variable was proxy with numbers of board of directors, liquidity risk, credit risk and operating risk, while the return on equity(ROE) and earnings per share (EPS) were used to proxy financial performance. Data were collected from secondary source through the annual report and account of the banks for the period under study and the data was analysed using multiple panel regression techniques. The findings reveal that board size, credit risk and operating risk are significant negative effect on return on equity (ROE) and earnings per share (EPS) respectively. The study also shows that liquidity risk is negative and insignificant effect on ROE and EPS of the study banks in Nigeria. It is recommended among others that the banks should regulate their risk management practices and ensure they minimize the non-performing loan as it has been found empirically to reduce the quality of the firm’s financial performance. They should also reduce their operational cost for better performance
Keywords: Banks’, Corporate board size, Financial Performance, Nigeria, Risk Management
Studying the Role of Corporate Governance in the Development of Risk Management in Commercial Banks Listed At Amman Stock Exchange (Field Study) (Published)
The study aimed to identify the role of corporate governance in the development of risk management in commercial banks listed at Amman Stock Exchange (ASE). To achieve this goal, the researcher relied adopted an analytical descriptive approach in her study to be convenient to the study nature. A questionnaire has designed as a tool to collect data. It distributed to a sample survey of the members of the committee’s corporate governance, audit committees and risk management commissions in these banks. The questionnaires have statistically analyzed using Statistical Package for Social Sciences (SPSS). The most important findings of the study that the presence of the role of corporate governance committees resulting from the Board of Directors in development of risk management in banks listed at ASE. This role was in uneven degree, between medium and high. In addition, the role of audit committees is the most development in the risk management, followed by risk management committees, and finally to corporate governance committees. The study concluded a set of recommendations including: It is necessary to activate the role of committees in the exercise of its work in development of risk management in commercial banks listed at ASE. The sub-committees should constituted of the board of directors in accordance with corporate governance, which includes financially and accounting experienced members. Finally, the financial experience should not limited to a specific number of members
Keywords: Commercial Banks, Corporate Governance, Risk Management
THE ADOPTION OF RISK BASED INTERNAL AUDITING IN DEVELOPING COUNTRIES: THE CASE OF GHANAIAN COMPANIES (Published)
The study investigated the adoption of Risk Based Internal Audit in Ghana, the factors that influence the adoption or non adoption of Risk Based Internal Audit amongst Ghanaian Companies. The involvement of internal auditors in risk assessment was also assessed in the context of Enterprise Risk Management. The study employed Pearson’s chi-square test of independence model at a p-value of 0.05. It was observed that risk based approach to internal auditing is widely used amongst Ghana’s Club 100 companies, especially amongst financial, Telecommunications, and Manufacturing companies. The study again found out that, there is high involvement of IA in risk management which translated to the use of risk based approaches in planning annual audits. Regulation the study observed is not a driver of adoption of RBIA in Ghana. The main factor that motivated the adoption of RBIA was, RBIA helped these organizations to focus on high risks priority areas
Keywords: Enterprise Risk Management, Internal Auditing, Risk Based Approaches, Risk Based Internal Audit, Risk Management, developing countries
RISK BASED INTERNAL AUDITING AND RISK ASSESSMENT PROCESS (Published)
Financial crisis that emerged in the international markets and accounting abuses as Enron, Worldcom in the U.S.A. that brought out the need of detection of the risks that organisations will encounter in the future and the management of these risks. Organisations to use risk management as an auxiliary tool in order to reach the stated targets raised management’ expectation about adding value of internal auditing. Risk based internal auditing which is the present latest stage of internal auditing and which brings to create achievement that having expected from internal auditing place the retrospective point of view the conventional control mentality on one side and had focused on risks that organisations will encounter. As to achieve succeess in the risk based internal auditing is possible with an effective risk assessment studies performed within this period. Risk findings obtained as a result of risk assessment studies constitute an important support to internal auditors at the stage designing of plannimg. In this study, risk based internal auditing which constitutes of today’s internal auditing mentality is tried to explained and risk assessment studies which are this process’ the most important stage has been considered within the scope of internal auditing units performed studies.
Keywords: Assessment of Risk, Internal Auditing, Risk Based Internal Auditing, Risk Management